ET Now: As we mark the return of underperformers in the week gone by, what is it that you are betting on? Is it Tata Motors, Sun Pharma or Axis Bank for you?

Sunil Subramaniam: For us, it is the combination of the auto sector where Tata Motors is present and also good quality banks. On pharma, we are still underweight. I think it will be a more company-specific approach rather than sectoral approach.

ET Now: What according to you is working for not just Tata Motors but even Bajaj Auto which has seen significant price action? It played out on Friday and after Bajaj Finance, Bajaj Holdings now perking up, people are betting on Bajaj Auto wherein the valuationsis extremely compelling and mouth-watering right now.

Sunil Subramaniam: It is basically a combination of softer interest rates, festival season demand and the fact that there is incredible surplus liquidity available in the rural and semi-urban areas because of the pay commission and last year's good monsoon. All in all, a good consumption season augurs well and consumer durables and discretionaries is the space in which auto fits in. All the names that you have mentioned are poised to take advantage of that both in terms of lending aggressively as well as in terms of people's own interest in buying things during a festival season.

ET Now: What is it that you feel is going to work in the market in the near term? Would it continue to be the laggards playing catch up?

Sunil Subramaniam: The key thing will be the actual consumption numbers including FMCG, consumer durables and auto numbers as the festival season is well underway. We have puja coming up now and then Diwali to follow. The ground level feels for consumption numbers is probably what will give a good direction to the market. That data is something to watch out for.